The state-run airport operator and developer had invested ₹4,526 crore in FY 2025-26
State-owned Airports Authority of India (AAI) has increased its capital expenditure (capex) for the financial year 2026-27 on a year-on-year basis to ₹4,563 crore, sources told businessline.
The state-run airport operator and developer had invested ₹4,526 crore in FY 2025-26.
The earmarked amount assumes significance since the annual capex is utilised to refurbish old terminal buildings, restore and operationalise unserved and underserved airports, and enhance airside as well as city-side infrastructure capacity.
A case in point is the government’s assertion that the country opens one new airport every 50 days.
Till now, AAI has operationalised 93 unserved and underserved airports — including heliports and water aerodromes — under the regional connectivity framework, significantly expanding India’s aviation footprint.
During the same period, it has also developed and refurbished multiple terminal buildings across its network to ease congestion and enhance passenger amenities.
According to industry insiders, expansion of both airside and city-side capacity remains a key ingredient in sustaining the sector’s growth.
Exponential passenger growth in recent years has led to congestion at several older terminal buildings.
The expected induction of over 1,700 aircraft over the next five years and beyond is also likely to strain parking bay capacity at many airports.
Growth momentum
“It is essential that aviation infrastructure is created and resurrected for the continued growth momentum of the sector,” sources said.
The capex outlay will also play a major role in fulfilling provisions under the modified UDAN framework that is currently under active consideration.
Notably, over the past few years, AAI has consistently maintained capex at around ₹4,500 crore annually for the last few years.
In FY 2023-24, capex stood at ₹5,000 crore, surpassing the target of ₹4,000 crore.
Recently, the authority completed a capital expenditure of ₹25,000 crore for the period between 2019-20 and 2024-25.
This programme fell under the National Infrastructure Pipeline, which had pegged an overall capital expenditure of ₹91,000 crore for airports — including those operated under the public-private partnership model — for the same period.
Looking ahead, the authority plans to develop a new greenfield airport at Dolo near Silchar in Assam and another at Kota. A new civil enclave in Saharanpur is also planned for 2026-27.
Meanwhile, AAI has finalised master plans for more than 300 airports up to 2050, factoring in passenger growth trajectories and envisaging phased airport development with projected land requirements to ensure seamless operations and future expansion.
Published on February 26, 2026